Government Extends Tax Relief for Diamond Mines

(IDEX Online) - Diamond miners in Canada's Northwest Territories (NWT) are to receive an additional year of tax relief in a bid to ease financial pressures and protect jobs.

The NWT government announced (on 22 December) that it would be extending the property tax relief for diamond mines that was introduced, initially as a one-year measure, for 2025.

It said the extension addresses persistent challenges like depressed diamond prices, tariffs and other trade disruptions, and increased operating costs.

The move will amount to total savings of CAD 8.8m (USD 6.4m) for the territory's three mines - Ekati (operated by Burgundy Diamond Mines), Diavik (Rio Tinto), and Gahcho Kue (De Beers/Mountain Province joint venture).

Diamond mining is NWT's largest private-sector industry and a vital part of its economy.

The property relief follows the federal government's announcement earlier this month of a CAD 115m (USD 83.5m) loan to support the Ekati diamond mine.

Extending targeted property tax relief is a pragmatic step to support economic stability and help northern families and communities weather ongoing pressures," said Caroline Wawzonek, NWT government's finance minister.

"As with our previous measures, this relief is temporary and comes with clear expectations that benefits support NWT workers, businesses, and Indigenous partners."

Pic shows Ekati mine.